Air Canada, with the financial
support of its partners, The Toronto-Dominion Bank (TD),
Canadian Imperial Bank of Commerce (CIBC), and Visa Canada
Corporation, has entered into a definitive share purchase
agreement with Aimia for the acquisition of Aimia Canada Inc., owner and operator of the Aeroplan loyalty business.
Concurrently with the signing of the share purchase agreement,
Air Canada, TD, CIBC and Visa signed various commercial agreements
relating to the acquisition, including credit card loyalty program
and network agreements for future participation in Air Canada's
new loyalty program, all of which are conditional upon closing of
the acquisition of Aimia Canada.
Additionally, Air Canada remains
in negotiations with American Express, which also issues Aeroplan
co-branded products, to secure its continued participation in the Aeroplan program after 2020.
Rovinescu, President and CEO of Air Canada, said, "We are extremely pleased to
have concluded the agreement for the purchase of Aimia Canada and
to have reached definitive agreements on our co-branded credit
card programs with each of TD and CIBC. Subject to closing the
purchase transaction, these agreements will produce the best
outcome for our customers as well as those of our partners as they
will facilitate a smooth transition to our new loyalty program
launching in 2020, safeguarding all Aeroplan Miles and providing
convenience and value for millions of Canadians. Our program is
expected to be one of the best loyalty programs in the industry,
which will be exciting for our customers and we are looking
forward to communicating details later next year."
acquisition of Aimia Canada remains subject to Aimia shareholder
approval and certain other closing conditions, including receipt
of applicable regulatory approvals. The closing of the acquisition
is expected to occur in January 2019.
purchase price consists of $450 million in cash subject to
post-closing adjustments and includes the assumption of
approximately $1.9 billion of Aeroplan Miles liability. Air Canada
will receive payments from TD and CIBC in the aggregate amount of
$822 million. Visa will also be making a payment to Air Canada. In
addition, TD and CIBC will make payments to Air Canada, at
closing, in the aggregate amount of $400 million as prepayments to
be applied towards future monthly payments in respect of Aeroplan